Leerink Swann Raises Valuation on Watson Pharmaceuticals (WPI); Getting That Out of The Way, Looking Ahead to More Challenges
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Price: $85.73 --0%
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Leerink Swann maintains a 'Market Perform' on Watson Pharmaceuticals (NYSE: WPI) price target of $81-$82 (from $79-$80)
Analyst, Jason M. Gerberry, said, "Lidoderm approval eliminates important risk factor for '13 EPS. In our view, one key source of investor concern regarding '13 has been g-Lidoderm's regulatory status. While a prior settlement with Endo (Nasdaq: ENDP) guaranteed sales from 2013-15, the structure of the deal provided greater upside if the WPI ANDA gained approval."
"Increasing our Actavis estimates based on outlook for new products. We see 3 recent developments as upside to WPI's initial accretion targets for the Actavis deal..."
All in, Gerberry says the next leg up in the WPI story looks challenging and expansion is linked to: 1) FDA establishing a regulatory path for brand Prochieve that doesn't include a pre-registration study; and 2) 1-2 year limited competition opportunity for g-Pulmicort. (FY12 EPS estimate lowered by $0.12)
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $78.63 yesterday.
Analyst, Jason M. Gerberry, said, "Lidoderm approval eliminates important risk factor for '13 EPS. In our view, one key source of investor concern regarding '13 has been g-Lidoderm's regulatory status. While a prior settlement with Endo (Nasdaq: ENDP) guaranteed sales from 2013-15, the structure of the deal provided greater upside if the WPI ANDA gained approval."
"Increasing our Actavis estimates based on outlook for new products. We see 3 recent developments as upside to WPI's initial accretion targets for the Actavis deal..."
All in, Gerberry says the next leg up in the WPI story looks challenging and expansion is linked to: 1) FDA establishing a regulatory path for brand Prochieve that doesn't include a pre-registration study; and 2) 1-2 year limited competition opportunity for g-Pulmicort. (FY12 EPS estimate lowered by $0.12)
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $78.63 yesterday.
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